CTP Exam Questions

- (Topic 5) The Treasury Department of ABC Corporation has been working hard to prevent external fraud from impacting its operating bank accounts. Recently, they implemented protec...

- (Topic 5) Major Manufacturing Inc. (MMI) is a manufacturer of customized restaurant equipment. MMI's supplier relations policy is to take advantage of trade discounts, when avail...

- (Topic 5) The earnings allowance rate applied to collected balances is usually determined by which of the following rates?

- (Topic 5) A pizza restaurant chain maintains separate accounts at bank branches near each of their 1,067 restaurants to handle the deposit of cash received. Early each morning, t...

- (Topic 5) In a large company, the person who normally oversees both the treasury and the accounting functions is the:

- (Topic 5) An international company would establish a re-invoicing center for which of the following reasons?

- (Topic 5) A company may choose to use a derivative to reduce risk on which of the following types of exposure?

- (Topic 5) All of the following are common consumer-to-corporate international payment mechanisms EXCEPT:

- (Topic 5) Which of the following types of payments would NOT be included in cash flow forecasting?

- (Topic 5) A company transfers funds from its remote accounts by ACH with a one-day settlement and is notified of a same-day credit of $100,000 in one of its accounts. A wire tran...

- (Topic 5) What step can a cash manager take to validate a cash flow forecast?

- (Topic 5) All of the following factors influence a company's decision to use electronic commerce EXCEPT:

- (Topic 5) The Cash Manager of XYZ Corporation is trying to determine today's closing cash position in order to make an investment or borrowing decision. The Cash Manager anticipa...

- (Topic 5) XYZ Company is considering different methods of concentrating cash from its subsidiary accounts to its main operating account. It uses short-term borrowings with a rate...

- (Topic 5) Which two of the following are necessary to calculate average collected balances?

- (Topic 5) Examples of fixed assets include which of the following?

- (Topic 5) In most countries other than the United States, which of the following is used to compensate banks for services provided?

- (Topic 5) When considering Fedwire, ACH and CHIPS as 3 different payment systems, which of the following applies only to Fedwire?

- (Topic 5) A company has made an investment of $30,000, which matures in 180 days and pays $800 in interest. Which of the following is the effective annual yield?

- (Topic 5) Which of the following correctly describes pooling as practiced in the European cash management environment?

- (Topic 5) All of the following are advantages of using traditional financial ratios for analysis EXCEPT:

- (Topic 5) A merchant closes its day with a total of 100 credit card transactions of an average ticket value of $100. The interchange reimbursement fees are 2% and transaction fee...

- (Topic 5) A diversified industrial company operates multiple remote manufacturing facilities that manage local supplier relationships. The company draws on a single line of credi...

- (Topic 5) The PRIMARY objective of a corporation is to:

- (Topic 5) An option can be exercised in the market at its:

- (Topic 5) A sinking fund is primarily used for which of the following purposes?

- (Topic 5) Which of the following are treasury management objectives?

- (Topic 5) Which of the following factors will allow a company to decrease the amount of collected balances required to compensate its bank for services?

- (Topic 5) Merchant XYZ has total credit card sales of $20,000 for one day with an average ticket of $200. The merchant's interchange reimbursement fees are 2% and transactions fe...

- (Topic 5) A United States corporation purchases finished products from a German subsidiary and sells raw materials to the subsidiary several times in one month. To minimize forei...

- (Topic 5) Which of the following is considered a financing decision?

- (Topic 5) The year-end income statement for a company is presented in Table 1. The balance sheet is presented in Table 2. What is the company's return on equity?

- (Topic 5) The company's monthly credit sales are in Table 1 and its receivables collection pattern is in Table 2. If this company wishes to achieve a second quarter (April-June)...

- (Topic 5) A company has a beginning cash balance of $50,000. Its weekly cash flow forecast shows the following information for the next three weeks. Which of the following statem...

- (Topic 5) Which of the following are KEY issues to be considered when establishing a shared service center (SSC)?

- (Topic 5) Which of the following global cash concentration methods would be MOST appropriate for a company with operations in the United States, Germany, Mexico, and Japan?

- (Topic 5) Which of the following MOST often contributes to the misinterpretation of DSO?

- (Topic 5) This question is based on the following data describing a company's actual deposits. If a five-day moving average is used, what was the deposit forecast for day six?

- (Topic 5) Which of the following would MOST LIKELY cause a decrease in a company's deposited checks availability?

- (Topic 5) Which of the following is a typical overnight use of excess cash?

- (Topic 5) There are 31 calendar days in the month, and the opportunity cost of funds is 9%. What is the annual cost of float for the batches listed?

- (Topic 5) Under an operating lease, possible benefits to the lessee include which of the following?

- (Topic 5) On a daily basis, the cash manager is responsible for all of the following EXCEPT:

- (Topic 5) "Fees" in Country Y, which would be considered bribes in the United States, are ingrained in the commercial culture. A U.S. company doing business in Country Y:

- (Topic 5) In capital budgeting, a company might risk adjust which of the following?

- (Topic 5) All of the following are account reconciliation services EXCEPT:

- (Topic 5) XYZ Corporation is presently a short-term borrower and uses a revolving line of credit with an interest rate of 7%. The Treasurer would like to reduce interest expense...

- (Topic 5) If a company uses accrual accounting, deferred taxes are reported on which financial statement?

- (Topic 5) Company RST is a seasonal retailer who has just completed its holiday season and is temporarily flush with cash. The treasurer has identified approximately $15 million...

- (Topic 5) A company's investment guidelines typically restrict all of the following EXCEPT: